According to The Verge - On 4th of April, LG announced that they will be exiting the smartphone producing market. The company said in a statement that this decision will “enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to business solutions, as well as platforms and services.”

The existing phones will remain on sale and LG says it will continue to support its products “for a period of time which will vary by region.” The company hasn’t said anything about possible layoffs except “details related to employment will be determined at the local level.” LG says it expects to have completed the business’ closure by the end of July this year.

The move has been rumored for several months, following the division’s huge losses over the past five years. Once considered a rival to fellow South Korean manufacturer Samsung, LG’s recent high-end smartphones have struggled to compete, while its more affordable handsets have faced stiff competition from Chinese rivals.